Artificial intelligence (AI) has the potential to transform both litigation and alternative dispute resolution (ADR), including arbitration. However, extreme caution must be exercised, Supreme Court Chief Justice Alexander Gesmundo has warned.

In his keynote address at the 3rd Arbitration Day conference on Friday, Gesmundo noted that AI could enhance arbitration by making processes more efficient, transparent, and data-driven through the analysis of vast amounts of historical case data.

He emphasized, however, that “courts should still be populated by human judges if we are to ensure that empathy and compassion remain integral to the consideration of equitable remedies.”

The head of the judiciary also cautioned about the potential drawbacks of AI: “Despite the promise AI holds for arbitration, its implementation raises important concerns. First and foremost, AI often requires access to sensitive data.”

He emphasized the importance of adhering to the Data Privacy Act of 2012 when handling any information used by AI-powered tools and noted the potential lack of transparency in how AI algorithms operate.

Gesmundo stressed that human arbiters are an indispensable element in resolving disputes, using their critical thinking and nuanced judgment to process information AI gives them.